Trush Incmanufactures a Product That Passes Through Two Processes: Mixing and and Packaging.All

question 51

Essay

Trush Inc.manufactures a product that passes through two processes: mixing and packaging.All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for July follows: Work in process, July 1:
$\begin{array}{lr}\text { Units (30\% complete) } & 15,000 \\\text { Direct materials } & \$ 4,000 \\\text { Direct labour } & \$ 3,000 \\\text { Overhead } & \$ 2,376\end{array}$
During July,100,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during July: $\begin{array}{lr}\text { Direct materials } & \$ 50,000 \\\text { Direct labour } & 30,000 \\\text { Overhead } & 12,000\end{array}$
At July 31,8,000 units that were 70% complete remained in the mixing department.
Use the weighted average method,and round unit costs to two decimal places.
Required: A. Determine equivalent units of production for July.
B. Determine July's total costs to account for.
C. Determine total cost per equivalent unit of production.
D. Determine the cost of goods transferred to the packaging department.
E. Determine the cost of July's ending work in process for the mixing department.
F. Determine the equivalent units of production for July if ending inventory had been $80 \%$ complete.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party to be charged with the contract, in order to be enforceable.

Oral Contracts

Agreements made verbally rather than in written form, which can be legally binding under certain conditions.

Memorandum

A written document or note that serves as a means of communication or a record of information.

Sale of Goods

A commercial transaction in which a seller transfers ownership of tangible personal property to a buyer for a price.